VISA, IBA launch tokenization system in Azerbaijan

VISA, together with the International Bank of Azerbaijan (IBA), is launching a tokenization system named Visa Token Service (VTS), the company told Trend.

According to the company, it is expected that Cristina Doros, General Manager for Caucasus at VISA, will join the event dedicated to the introduction of the system on September 10.

The company announced plans to launch a tokenization system in Azerbaijan in May 2019 at the FINTEX (Finance and Technology) Summit titled “New Trends in the Banking and Payment Ecosystem: Innovative Solutions, Financial Technologies and Security” held in Baku.

Tokenization, according to Doros, is an essential element of digital cashless payments. She noted that the tokenization system will allow digitizing payment cards.

Tokenization technology allows for securing electronic payments using a reliable data encryption system (details of the customer are not transmitted to the seller when paying by card).

Tokens are stored in the customer base of stores where the user makes the payment. Further purchases are just a click away. The advantage of using this method lies not only in convenience, as it also eliminates the probability of a customer card number being stolen in a digital space.